Main Street Capital Corporation Announces Quarterly Dividend of $0.30 (NYSE:MAIN)

Key Points

• Main Street Capital Corporation announced a dividend of $0.30 per share, set to be paid on September 26th to investors of record by September 22nd, with an ex-dividend date on September 19th.
• The company currently has a dividend payout ratio of 78.9%, indicating its dividend is covered by earnings, but future sustainability depends on maintaining earnings levels.
• Main Street Capital's stock has seen an increase in analyst ratings, with price targets raised by multiple firms, including Royal Bank of Canada which set a new target of $67.00, reflecting positive market sentiment.

Main Street Capital Corporation (NYSE:MAIN - Get Free Report) declared a quarterly dividend on Monday, August 4th, investing.com reports. Investors of record on Wednesday, October 8th will be paid a dividend of 0.30 per share by the financial services provider on Wednesday, October 15th. This represents a c) annualized dividend and a yield of 1.9%. The ex-dividend date is Wednesday, October 8th.

Main Street Capital has a dividend payout ratio of 78.9% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline. Equities research analysts expect Main Street Capital to earn $4.06 per share next year, which means the company should continue to be able to cover its $3.00 annual dividend with an expected future payout ratio of 73.9%.

Main Street Capital Stock Performance

NYSE:MAIN traded down $1.52 during midday trading on Monday, hitting $64.26. The company's stock had a trading volume of 757,604 shares, compared to its average volume of 563,715. Main Street Capital has a fifty-two week low of $47.00 and a fifty-two week high of $67.77. The firm's 50 day moving average is $65.36 and its 200-day moving average is $59.39. The company has a debt-to-equity ratio of 0.12, a current ratio of 0.09 and a quick ratio of 0.09. The firm has a market cap of $5.75 billion, a P/E ratio of 10.59 and a beta of 0.88.

Main Street Capital (NYSE:MAIN - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The financial services provider reported $0.99 earnings per share for the quarter, hitting the consensus estimate of $0.99. Main Street Capital had a net margin of 96.16% and a return on equity of 12.70%. The company had revenue of $143.97 million for the quarter, compared to the consensus estimate of $137.23 million. Equities analysts anticipate that Main Street Capital will post 4.11 earnings per share for the current fiscal year.

Insider Buying and Selling at Main Street Capital

In related news, Director Nicholas Meserve sold 14,000 shares of the stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $67.15, for a total value of $940,100.00. Following the completion of the transaction, the director directly owned 82,383 shares of the company's stock, valued at approximately $5,532,018.45. This represents a 14.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Jason B. Beauvais sold 13,664 shares of the stock in a transaction on Friday, June 27th. The shares were sold at an average price of $59.37, for a total value of $811,231.68. Following the completion of the transaction, the executive vice president directly owned 181,526 shares of the company's stock, valued at approximately $10,777,198.62. This represents a 7.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. 4.09% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC acquired a new stake in shares of Main Street Capital in the 4th quarter worth $304,000. Squarepoint Ops LLC increased its stake in shares of Main Street Capital by 44.0% in the 4th quarter. Squarepoint Ops LLC now owns 24,875 shares of the financial services provider's stock worth $1,457,000 after acquiring an additional 7,598 shares during the last quarter. Vise Technologies Inc. increased its stake in shares of Main Street Capital by 60.6% in the 4th quarter. Vise Technologies Inc. now owns 8,495 shares of the financial services provider's stock worth $498,000 after acquiring an additional 3,204 shares during the last quarter. Ameriflex Group Inc. acquired a new stake in shares of Main Street Capital in the 4th quarter worth $1,489,000. Finally, Jefferies Financial Group Inc. acquired a new stake in shares of Main Street Capital in the 4th quarter worth $3,993,000. 20.31% of the stock is owned by institutional investors and hedge funds.

Main Street Capital Company Profile

Main Street Capital Corporation is a business development company specializes in equity capital to lower middle market companies. The firm specializing in recapitalizations, management buyouts, refinancing, family estate planning, management buyouts, refinancing, industry consolidation, mature, later stage emerging growth.